UPDATE 2-Taubman Centers FFO rises but sees full yr at low end

* Sees full-year FFO at lower end of reduced range

* Third-quarter FFO beats Wall Street's forecast

* Tenant sales inch up (Recasts first paragraph, adds property strategist quotes, last year's sales comparison)

NEW YORK, Oct 21 (Reuters) - Taubman Centers Inc (TCO.N), owner of high-end shopping malls, said on Tuesday quarterly funds from operations rose nearly 10 percent after opening an new mall, but sees full-year performance at the lower end of a reduced forecast.

The U.S. housing bust and the ensuing credit crisis have pummeled consumers, retailers and owners of shopping centers.

Year to date, U.S. retailers have closed about 6,000 stores, and about 50 percent are in malls, according to Property & Portfolio Research Inc.

The deteriorating U.S. economy is expected to exacerbate those problems. "Our outlook for retail is ugly," said Suzanne Mulvee, Property & Portfolio Research real estate strategist.

Taubman may ride the downturn better than most other U.S. mall landlords.

"We continue to believe higher quality centers with greater exposure to major markets & luxury will hold up better in the current downturn," UBS analysts Jeffrey Spector and Lindsay Schroll wrote in a note. "This is the last place retailers will close stores."